Why does Cisco deserve consideration as one of the best growth-and-income stocks in tech? It's precisely because of the recent investor angst surrounding its future sales-and-earnings estimates, which increase Cisco's potential upside. Another factor will be Cisco's emphasis – and its early, impressive results -- in fast-growing markets, including the cloud, Internet of Things (IoT), and data security.
Expense control went a long way in boosting Cisco's fiscal Q1. Both cost of sales and total operating expenses declined, which was even more impactful given that the improved management of overhead came even as Cisco increased revenue year over year. Better still, new-ish CEO Chuck Robbins made it clear that additional cost savings are forthcoming. Improved cost control was a primary reason why Cisco's non-GAAP (excluding one-time items) earnings per share jumped more than 9% despite a "mere" 3.6% increase in revenue. Not surprisingly, Cisco's fiscal management also positively affected gross margins, which improved to 62% compared to 60% a year ago.